The news: Paramount is significantly culling its workforce, per Variety, as part of a broader cost-cutting initiative to reduce expenses by $500 million annually.

The cuts will affect 15% of the US workforce, which equates to around 2,000 employees. A second phase of layoffs that started earlier this year comes as Paramount faces declining TV viewership and rising streaming costs. Paramount agreed to merge with Skydance Media in July.

Why it matters: Paramount, like other legacy media companies, is grappling with significant headwinds adjusting to an industry increasingly dominated by streaming. Traditional television, once a cornerstone of Paramount's revenues, has seen a consistent decline. US adults will spend 3.6% less time with TV per day this year, per our forecast.